I’m asked this question a lot by companies who are trying to figure out why they have a hard time hiring the right people. And often I recognize they’re struggling with either one or both of the elements essential for a great hire:

Finding and Funneling.

Finding is the recruiting phase of the process. If a company isn’t able to identify and attract quality candidates, the best interview techniques in the world won’t do them a bit of good. Finding is about having a large pool of highly qualified, desirable people to choose from. It requires companies to be methodical and consistent in their networking efforts. It forces them to constantly be on the lookout for individuals who could take their organizations to the next level. Doing this part right ensures that when the time comes to hire someone, they’re choosing from the best, not simply accepting who’s available and can start on short notice.

Funneling is about having a proven hiring system to follow. It involves creating a step-by-step method that maps out the sequence of events people go through once the company becomes interested in them as candidates. The goal is simple: keep narrowing down the initial group of prospects until you’ve identified your top choice. The heart of effective funneling is a structured selection process that includes solid interviewing, assessment, and reference checking practices that are followed by managers every time they hire. And managers have to be trained in the skills needed to execute the system for it to really pay off.

Some companies are top-notch finders but botch the funneling part. They attract great candidates, but their haphazard or non-existent selection practices keep them from choosing the right ones. Other companies are decent at funneling, but they aren’t attracting enough quality candidates. They have to exit the majority of the people they interview, and sometimes they end up settling for a mediocre choice simply to get someone in the open position.

But the ones that master both finding and funneling? Those are the companies with great people whose individual success typically fuels the organization’s success. That’s what they’re doing right.